Every year, companies have to deal with predictions and challenges regarding global business. One of the well-known elephants in the room is the pandemic, affecting all companies. Next to the virus, other national and international trends keep organizations busy. How can your company respond to current global events? What type of strategies should you carry out to strengthen your brand and market position? We take a closer look into four business trends in 2022 – Data security, e-commerce, hybrid working and sustainability – and share insights on what your company could carry out for the near future.
1. Data security – Often overlooked, but crucial for your brand image and consumer trust
Consumer trust will make or break your brand image, especially how your company ensures data security. When people think of data security, they will most likely think of protecting data against risks, preventing data loss, and ensuring that data will not be misused or fall into unauthorized hands. Your company website should consist of a legal notice regarding your cookies and how your company protects the data of customers and website visitors. However, many companies tend to overlook the importance of detailed measures against data theft. In recent years, cybersecurity risks have been escalating globally. The question “How do I prevent hacking and data breaches?” turned into “When will data breaches happen?”
What can you do when cybersecurity risk prevention is impossible? The answer to that is to ensure that your company is well-prepared to take the necessary actions when it happens. Think of how you will bring the news to the outside world and what resources you have to limit the damages and solve the issue as effectively as possible. If companies want to be well-prepared for data challenges, investments in data security are the norm.
Global Connect Admin heavily invests in data security. Our customers are international companies, as well as private equity families. To ensure that their data is protected to the best of our ability, we secure the highest level of data protection. If you have any questions regarding how we do this, or if you are looking for professionals that can take care of your cybersecurity risks, do not hesitate to reach out to us.
2. E-commerce – Booming, however…
With the high level of convenience for customers, whether B2B or B2C, it is no surprise that e-commerce is booming. Global sales rose to 16.4% during the pandemic and continued to grow further. E-marketers predict that 22% of the global retail sales will increase to 22% by 2023. While e-commerce is booming, e-commerce companies will take a hit due to the economic barriers against Russia. Companies either choose or are forced to discontinue business with Russia, and freight costs will further increase with the rising oil and gas prices and limitations of no-fly zones.
E-commerce companies now have to choose alternatives to limit shipping costs and rising prices. For example, many companies tend to move production to Europe instead of Asia or choose green options regarding freight. Your company must communicate with your consumers at moments like this. Tell them what your 2022 actions are and what these mean for the consumer’s wallet and shipping. The good news is that your company is not the only one affected by global issues. The bad news is that if you do not take any action regarding current international events, the competition will eat you.
Have you thought of your short and long-term company strategies? Global Connect Admin assists international companies worldwide and has experience with various industries. If you are looking for distribution centers or would like international tax and VAT professional assistance, please get in touch with us. We would gladly help you with finding the best solutions.
3. Hybrid working – The new future
Remote and hybrid working is nothing new, but it is no secret that the global pandemic sped up the process of moving away from the office as a workplace. Compared to 2015, almost every company can now call itself (somewhat) experienced in hybrid working. While the pandemic heavily affected the global economy, it also proved that employees do not need constant supervision to perform well and be productive.
The main challenge with hybrid working is communication. What works for team A might not work for team B. How do you ensure that employees feel engaged and communicate well with each other, whether there is a lockdown or not? One solution is to establish clear ground rules regarding the workplace.
Since 2015, Global Connect Admin has experience in remote and hybrid working. To create the best hybrid workplace plan for your employees and your company, you need to analyze productivity and employee benefits. Many companies also tend to overlook what is possible in the legal aspect: Can employees work from any place they want to, or will your company experience insurance issues? If you have any questions regarding hybrid working, you can always reach out to us for tips and tricks.
4. Sustainability – Consumers find it essential, but do companies think the same?
Consumers went from requesting companies invest in sustainability to demanding it. The sustainability trend means that no matter the size of your company, you need to innovate your products and services for the greater good. More companies are now investing in green energy and sustainability projects. Meanwhile, international tax authorities are now also demanding sustainability reporting.
Recent years show that many international companies are already taking some actions regarding sustainability. For example, they switch diesel company cars to electric ones and invest in hydrogen projects. Meanwhile, the scarcity of Russian oil and gas further forces governments, companies and households to invest in different – more green – energy sources and solutions.
Sustainability goes further than thinking about how your company can impact the carbon footprint: you must now also think of society as a whole. If you only focus on, for example, your innovative products and services, you are only telling half of the story. Actions speak louder than words, so ensure to listen to your shareholders and customers and then implement the proper steps they want to see.
Global Connect Admin has experience in sustainability reporting regarding international groups. We assist companies with, for example, XBRL reporting. With XBRL software, EU-listed companies can effectively link their data to sustainability information (such as the ESEF taxonomy). Our employees are highly experienced in consolidated annual reporting and will gladly assist you and your team.
Whether global trends enhance or challenge your business, you have to take action for the short and long-term. Even small-sized companies that are only locally active are affected by international developments. The real question is, what can your company do to act accordingly? Your answer depends on which industries your company is active in and what type of products and services you offer. However, one thing is for sure: You need the right tools, expertise and resources to ensure that your business continues to prosper. Take the right actions and communicate accordingly, and you will come a long way.